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Despite the difficult times, the Estonian wood industry showed a strong economic result in the first quarter of 2023.\u00a0In the first three months of 2023, the total turnover of the wood industry, which includes both primary and secondary processors of wood, reached 865 million euros.\u00a0Compared to the same period last year, the turnover of the wood industry has increased by 14.1%, which is mainly due to the increase in the turnover of solid fuel wholesalers and manufacturers of wooden consumer and decorative items.\u00a0If we compare the sales revenue of the last 12 months as of the end of the first quarter of 2023 with the previous 12-month period, the total turnover has increased by 15.9%.\u00a0The increase in turnover in the last year is largely due to the increase in prices, which is due to, among other things, the increase in wood prices, labor costs and other input prices.<\/p>\n
Despite the strong economic performance, employment in the wood industry has fallen and several companies in the sector have had to lay off workers.\u00a0While in the first quarter of 2022 there were 11,100 employees in the field, by the first quarter of 2023 the number of employees had dropped to 10,500.\u00a0At the same time, salaries in the wood industry have increased by nearly 12% compared to the same period last year: the average salary in the sector was 1,809 euros in the first quarter of 2023 (1,621 euros in the first quarter of 2022).<\/p>\n
According to representatives of the sector, the Estonian wood industry faces low employment and an aging workforce.\u00a0Due to the low population growth rate, the decrease in the number of people of working age in the near future and the lack of interest in the profession among young people, the problem may worsen in the following years, and therefore it can be assumed that wage growth in the sector will continue in the future.<\/p>\n
The efficiency indicators of the wood industry are stable compared to the end of 2022.\u00a0Compared to the same period last year, the turnover of wood industry companies per employee has increased by 21.1% due to both the increase in prices and the decrease in the number of employees.\u00a0As Estonia's annual inflation level as of the quarter of 2023 was 17.1%, the annual real increase in the efficiency of the sector remained at around 4%.<\/p>\n
The following year promises to be difficult for the Estonian wood sector, as the exports of the Estonian wood industry are mainly to Scandinavian countries, where the growth of the construction and real estate sectors has been replaced by a decline.\u00a0This is especially the case in Sweden, where the number of building permits issued has fallen sharply compared to previous years.\u00a0In addition, consumer confidence has fallen in all important export markets of the wood sector, and the industry's customers have large inventories that take longer than usual to sell.<\/p>\n
The coalition agreement published in April revealed that the new government does not intend to increase felling volumes in the coming years, which, according to the Estonian Forestry and Wood Industry Association, will directly affect employment in forestry and related sectors.\u00a0At the same time, the government has set a goal to increase the value of wood locally in Estonia.\u00a0According to representatives of the sector, wood chemistry is an innovative field that would help to extend the supply chain of local wood and create a new circular bioeconomy link in Estonia.<\/p>\n
Although the near future promises to be difficult for the wood sector, the past has shown that the Estonian wood industry adapts quickly and has been able to increase both turnover and profit even in the most severe crisis years.\u00a0Due to the high investments of the previous years, Estonian wood industry companies are well automated, digitized and have above average productivity.\u00a0In addition, we can also expect a partial downward correction of wood prices due to the moderation of energy prices in Europe.<\/p>","protected":false},"excerpt":{"rendered":"
Despite the difficult times, the Estonian wood industry showed a strong economic result in the first quarter of 2023.\u00a0In the first three months of 2023, the total turnover of the wood industry, which includes both primary and secondary processors of … Continue reading